Timeline for What are the options to beat the returns of an index fund, taking more risk?
Current License: CC BY-SA 4.0
13 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Oct 8, 2020 at 17:11 | comment | added | Fattie | .. (in short) you'd need a million cash down to do that with stocks. | |
| Oct 8, 2020 at 17:10 | comment | added | Fattie | @KevinWells , I think the "extreme bizarre scenarios" have become a bit confusing. If you buy a 1m apt and keep it for three decades, you'll make ..... a shitload of money. (Think how much yours and my salary will be 30 yrs from now.) Sure, you can construct an insane hypothetical, such as rents drop (!) to zero (!), the purchase price doesn't (!) change in 30 (!) years, salaries plummet (!) even in nominal (!) terms, etc etc. The simple fact is, if you buy a 1m apt and keep it for three decades, you'll make ..... a shitload of money. That is just not possible w/ stocks as... | |
| Oct 8, 2020 at 16:15 | comment | added | Kevin | @Fattie I think it's actually worse than that. If you turn $1M into $1M thirty years from now then you've lost a lot of value due to inflation | |
| Oct 7, 2020 at 9:24 | comment | added | Criticizing Israel not allowed | @Fattie If the apartment's price stays the same and there is no interest and you don't pay the principal, then you've turned $100k into $100k (because you have a $1M apartment and $900k of debt). Either way it's still wrong to say you turned $100k into $1M. | |
| Oct 6, 2020 at 22:02 | comment | added | Ark-kun | @Fattie "you have "merely" turned 100k into 1m" - Why wait 30 years? By this logic the second you sign the documents, you've "turned 100k into 1m". Now take this $1M and "turn that 1M into 10M" the next second. | |
| Oct 6, 2020 at 18:03 | comment | added | Fattie | @user253751 - in an investment type thinking scenario, you wouldn't even bother paying off the capital, interest only | |
| Oct 6, 2020 at 17:15 | comment | added | Criticizing Israel not allowed | @Fattie No, I mean the principal (you're right, I forgot the interest). | |
| Oct 6, 2020 at 17:06 | comment | added | Fattie | @user253751 - quite so (I'm assuming you mean the interest paid over the decades), but (A) over lifetime periods often interest is very low for long stretches (such as currently) so in your calculation it's only (say) 30k a year for the odd decade, (B) the money-saved-on-rental is epic and flies up w/ inflation, conversely if you (C) rent it out (ditto on inflation) that's incoming and (D) in most jurisdictions, a fat tax saving on the interest anyway. | |
| Oct 6, 2020 at 16:45 | comment | added | Criticizing Israel not allowed | If your $1M apartment is worth $1M in 20 years, you have turned $1M into $1M. You haven't turned $100k into $1M. $100k was only the initial deposit, you paid an extra $900k later. | |
| S Oct 6, 2020 at 2:06 | history | mod moved comments to chat | |||
| S Oct 6, 2020 at 2:06 | comment | added | Ganesh Sittampalam♦ | Comments are not for extended discussion; this conversation has been moved to chat. | |
| Oct 5, 2020 at 13:36 | history | edited | Fattie | CC BY-SA 4.0 |
added 550 characters in body
|
| Oct 5, 2020 at 12:38 | history | answered | Fattie | CC BY-SA 4.0 |